Monday, November 29, 2010

Islamic Banking softens the effects of the global rescission in the Gulf

While writing my paper, I came across couple articles that argue that Islamic banking in the GCC shielded their economies to a certain extent from the full brunt of a global financial meltdown. Islamic banking, has different regulations, such as: “asset-backed and no-interest investments and prohibiting dealing in activities that Islam deems unlawful.” And now it’s growing in popularity. Keep in mind though a global recession reduces the demand for oil, which is the majority of exports for most GCC states, except for Emirates and Kuwait who have diversified their economies, from just relying on oil exports.